Investor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value Fund

The HTML to link to this page
 

A mutual fund that employs a value approach to investing is referred to as a value fund. A manager of a value fund will select stocks he/she believes are fundamentally undervalued for inclusion in the portfolio. Value fund managers typically screen for companies trading at a P/E discount to the overall market or companies in a turnaround mode. A value fund is more focused on safety than a growth fund so most value fund managers look for mature companies with ample cash flows that have an established track record of paying dividends. Value fund managers generally outperform growth fund managers during periods when the economy is weak. Because a value fund derives a portion of its returns from dividends and is not dependent exclusively on share price gains, a value fund tends to be less volatile than a growth fund.



Rate this value fund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: ex-dividend, deferred revenue, limit order, FTSE, stock split, APR, 401a, 144a, phantom income, debt service coverage, liquidity ratio, current ratio, diluted share, LIBOR, margin rate, minority interest, ex-dividend date, reverse mortgage, dividends payable, Zero Cost Collar, covered put, balance sheet, 1035 exchange, deferred tax, per diem, VIX, class C shares, wholly-owned subsidiary, required rate of return, EBITDA, real GDP, 1031 exchange, stock market close, in escrow, risk management, inflation, quality assurance, command economy, option premium, average price per share, Key Rate Duration, irrevocable trust, annual return, open position, cancelled check, retained earnings, FICO score, labor relations, implied volatility


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use